Market drops at midday over liquidity concerns | Shanghai Daily

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Market drops at midday over liquidity concerns

SHANGHAI'S key stock index buckled more than 5 percent in the morning trade among speculations that shrinking new loans will curb liquidity in the market.

The benchmark Shanghai Composite Index buckled 5.37 percent, or 153.73 points, to close at 2,706.96 points. Turnover was 70.4 billion yuan(US$10.3 billion). Losers outnumbered gainers 828 to 41 and 40 remained unchanged.

The Shenzhen Composite Index, which tracks the smaller domestic market, slid 5.66 percent to close at 919.18 points.

New loans extended by domestic banks in August may drop below 300 billion yuan, further lower from the 356 billion yuan increase in July, and this may hurt investors' confidence, Ping An Securities wrote in a research note.

Profits for a total of 1,637 listed companies in Shanghai and Shenzhen market for the first half reached 481.1 billion yuan, down 14.8 percent from a year earlier. Operation revenue were 5.10 trillion yuan, a 11.8 percent drop from the year-earlier period.

"The market will remain weak with lacking for technical support and macroeconomic policy to stimulate the index," Everbright Securities wrote in a research note.

Industrial & Commercial Bank of China, the nation's biggest lender, dropped 3.02 percent to 4.49 yuan. Shanghai Pudong Development Bank slid 4.21 percent to 18.20 yuan. China Construction Bank lowered 4.41 percent to close at 5.20 yuan. Bank of Communications buckled 3.15 percent to 8.00 yuan.

Heavyweights and property shares suffered losses.

China Petroleum & Chemical Corp, Asia's largest refiner and also known as Sinopec, sank 9.46 percent to 11.20 yuan. PetroChina lost 5.25 percent to 13.00 yuan.

China Vanke Co, the biggest listed domestic real estate developer, slid 7.23 percent to 9.49 yuan. Gemdale Corporation sank 8.78 percent to 12.05 yuan. Poly Real Estate Group buckled 9.72 percent to 20.80 yuan.



 

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